GSK Stock Plummets 9.3% in 2025 After Delaware Court Greenlights Zantac Cancer Lawsuits
GSK shares dropped sharply after a Delaware judge permitted lawsuits alleging that the discontinued heartburn medication Zantac causes cancer to proceed. The pharmaceutical giant denies these claims and plans an immediate appeal, maintaining its investment strategy remains unaffected.
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Key Highlights
- GSK Plc ADRs plunged 9.3% during intraday trading after a Delaware Superior Court judge allowed around 75,000 lawsuits to proceed, alleging Zantac causes cancer.
- The company firmly denies any link between Zantac and cancer and announced plans to appeal the decision immediately.
- The ruling contrasts with a 2022 federal court dismissal of similar cases, highlighting ongoing scientific debate.
Shares of GSK Plc (GSK) experienced a significant decline in intraday trading on Monday after a Delaware judge ruled that lawsuits claiming the pharmaceutical company’s former heartburn drug, Zantac, causes cancer could advance. The court acknowledged conflicting expert opinions, emphasizing that a jury must resolve these scientific disputes.
GSK Vows Immediate Appeal, Affirms No Cancer Risk Evidence
GSK swiftly responded, committing to appeal the ruling. The company stated there is no consistent or reliable scientific evidence linking Zantac to an increased cancer risk. GSK highlighted that this decision contradicts the federal multicourt litigation ruling from December 2022, which dismissed claims involving five cancer types.
Zantac, originally developed by GSK and later owned by Pfizer and Sanofi (which currently holds U.S. rights), was removed from the U.S. market following the FDA’s 2020 directive to eliminate all ranitidine-based products due to safety concerns.
Despite this legal setback, GSK confirmed that its capital allocation and growth investment plans remain unchanged.
On Monday, GSK’s ADRs dropped to $40.63, down 9.3%, though they maintain a 10% gain for the year. Sanofi’s ADRs remained stable, while Pfizer shares rose approximately 2%.
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